The Proof of Pale Brotherhood revealed that information technology is taking critical steps toward improving the regulatory space around the Staking-as-a-Service (STaaS) market, including dialogues with the U.S. Securities and Substitution Commission.

According to the announcement, the POSA met with the SEC to talk over increasing adoption of Proof-of-Pale (PoS) protocols — a successor to Bitcoin'south (BTC) Proof-of-Work consensus protocol that is perceived to be more efficient and scalable.

Staking allows token holders to earn interest on locked amounts of a network's native token, which in plough supports the network'due south overall efficiency.

The POSA submitted a white paper containing a legal analysis from the international police firm Paul Hastings LLP and said the dialogue "concerning the legal analysis" was ongoing.

Progress reported at SEC meetings

The meetings with the SEC were held in February to brainwash the agency almost PoS engineering science and talk over a regulatory framework for STaaS offerings.

The POSA previewed a ready of manufacture-driven standards that aim to get ahead of potential regulatory concerns, including request STaaS providers to refrain from investment communication, avoid financial industry terminology (such as "interest," "dividend" or "yield"), focus on security and participation in the network, and avoid providing guarantees regarding advantage amounts.

Evan Weiss, the president and founder of the POSA, told Cointelegraph that he was "extremely impressed" with the understanding the SEC has of staking, adding:

"Nosotros are grateful that they take taken the time to encounter with us and start a dialogue around how staking can be successful here in the U.S. We run across this discussion every bit an on-going opportunity to larn from each other, to help ensure that staking-based protocols have the potential to flourish here in the U.S. while also ensuring that consumers and token-holders are protected."

Bryce Ferguson, production manager at Coinbase Custody said, "Information technology'due south critical that the industry has an open dialogue with regulators, and that staking service providers abide past certain standards. By acting together, industry players tin help ensure that Proof of Pale networks proceed to flourish."

Cointelegraph reported on January 30 that Coinbase Custody and Bison Trails have joined the ranks of the POSA, advocating for the adoption of articulate regulations on staking proceeds, among other initiatives.